Browning Company sells two products-X and Y.Product X is sold for $30 per unit and has a variable cost per unit of $15.Product Y is sold for $30 per unit and has a variable cost of $10 per unit.Total fixed costs for the company are $20,000.Browning Company typically sells three units of Product X for every unit of Product Y.What is the breakeven point in total units? (Round any intermediate calculations to two decimal places,and your answer to the nearest unit. )

Question

Quizplus · Accepted Answer

A)
 11ea86d6_82f4_199d_92b6_fd67919b9788_TB2804_00 Weighted contribution = ($15 × 3)+ ($20 × 1)= $65
Weighted-average contribution margin per unit = $65 / 4 = $16.25
Breakeven sales in units = (Fixed costs + Target profit)/ Contribution margin per unit
Breakeven sales in units = ($20,000 + 0)/ $16.25 per unit = 1,231 units

Browning Company Sells Two Products-X and Y